COMMERCIALIZATION, MARKET AND PROJECTION

Since 2019, Mexico became the number one producer in the world, reaching an approximate figure of 110,000 tons in shell nuts.

Leaving the United States in second place, this is due to the fact that plantations in Mexico increase by 8% each year and in the United States, due to its laws and regulations, it is not so easy to start new plantations. Mexico is a slightly more accessible country for that, the labor is cheaper, the costs of fertilizers, land management, etc.

That’s why it’s a profitable business in Mexico and the two countries share a very similar climate in northern Mexico and southern U.S.A.

This great new fruit has conquered new markets, especially in Asia and Europe. Therefore, increasing its demand each year by 10%, which causes a deficit in the amount of walnut produced, and the new farms that go into production against the demand that increases in a unbalanced way. This generates a price increase, which has meant a great business for the largest marketers in the U.S.A that with their great financial infrastructure manage to monopolize the nut at low prices.

Since 2016, when record price figures were achieved (walnuts in the shell of $ 8 USD per kilogram approximately), walnut hoarders and large importing buyers from the USA managed to control the market by pressuring farm owners to sell their merchandise, simulating low demand and low supply after they broke them. To later sell it to the Asian and European markets, mainly at high costs throughout the year.

This year, around 30% less production is expected due to climate and drought issues in Mexico and the U.S.A., which will have a great impact on the markets